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Sunday, October 22, 2017

Penang landslide tragedy, plea went unheeded, no one listened !


https://youtu.be/QB45Q2_mOG0
Suspicious activity: A photo taken from Penang social activist Anil Netto's blog showing an active stone quarry about 500m directly behind the site of the landslide.
https://youtu.be/yqtdkBsipCU

GEORGE TOWN: As the landslide tragedy takes its toll with three workers killed and 11 others feared dead, DAP state assemblyman Teh Yee Cheu said there are still 10 other development projects pending, but his plea to save the hills has been constantly ignored.

Some of the projects will be near hillsides and more are planned along the coastline. A few are projected to be 50 to 60 storeys high, said the Tanjung Bungah assemblyman.

“I objected to each one. I always use the words Saya membantah sekeras-kerasnya (I strongly object) and some city councillors laughed at me and said the approval authority ‘menyokong sepenuh-penuhya’ (fully supports).

“Now see what has happened,” Teh told The Star.

He was referring to the one-stop centre at the Penang Island City Council (MBPP), which is in charge of approving property development plans on the island.

Teh, who rushed to the scene of the landslide shortly after it happened at about 8.30am yesterday, did not hide his discontent over the spurt of development projects in his constituency.

“Not all those development applications have been approved yet.

“But after the general election, I expect a mushrooming of approvals,” he added.

Tanjung Bungah is one of the few residential areas on the island with a low population density.

The Lembah Permai area, locally called Hillside or Vale of Tempe, is a coveted location for its semi-detached, terraced and bungalow homes.

But in recent years, developers have been submitting plans for high-rises that rival even the height of Komtar, in the area’s unoccupied hills and seaside.

Yesterday’s landslide happened at a construction site near Lorong Lembah Permai 3.

Tens of thousands of tonnes of laterite earth slipped down from a height of about 35m, burying the workers.

Firemen told reporters that the search operation had to be carried out slowly because the slope was unstable.

Teh said he objected to the project’s planning permission about two years ago because the original hill slope had a steepness of 30 to 40 degrees.

“I apologise to my voters in Tanjung Bungah. I objected to the construction, but my words were only taken as a personal view by the MBPP and state government.

“I also apologise to the family members of the victims buried by the landslide,” he said.

Asked about a stone quarry located some 500m further uphill from where the landslide occurred, Teh said that it was active, with rock blasting going on two to three times a week.

“I am against that too, but it was allowed to continue,” he added.

Source: The Star

Another call to stop all hill-slope development immediately



Why must it take a tragedy to happen in Penang before the Penang state and local governments wake up to the dangers of rampant and unsustainable development especially on hill slopes? Or will they wake up?

Two years ago, in December 2015, the Penang Forum, alarmed by such negative developments, organised a half-day event titled “Save Our Hills” in which engineering, planning and legal experts gave presentations on the dangers of hill-slope development. (The presentations are available on Penang Forum’s website.)

It then called on the government to review and stop further hill-slope projects. Very sadly, the call fell on deaf ears and the consequences are painfully evident today after an estimate of perhaps 15 lives are lost in a landslide at a hill-slope project in Tanjung Bungah.

Penang Forum then started Penang Hills Watch (PHW), a citizens’ initiative to provide the state government, information on hill cuttings that it collects from the public. In January 2017, the PHW met with the state government; the present site where this tragedy happened was the first case that PHW highlighted to the state government. (Please visit the PHW website.) Photos of construction and hill cutting on this site were presented to the state government – to which it responded that the “earthwork is being monitored.”

The chief minister of Penang, in the Safety Guidelines for Hillside Development, said: “Penang Local Governments (MPPP and MPSP) are to strengthen their Geotechnical unit, which processes and approves applications for hill site developments, followed by strict enforcement. A monitoring team will be established to ensure compliance in construction and monitoring performance of slopes.”

The question is what happened then? Did the state and local governments follow through their own guidelines? Or was there gross negligence?

Such senseless tragedy could have been avoided. Penang Forum calls for an independent Royal Commission of Inquiry to investigate what went wrong and how such incidents can be avoided in the future. All parties beginning from the State Planning Committee that gave approval for all hill-slope projects, to the One-Stop-Committee of the Penang Island City Council that also approved the project, to the engineers who are supposed to monitor the projects, to the developers and contractors who carried out the project should be investigated and held responsible.

In the meantime, Penang Forum once again calls on the authorities to:

  • stop all hill-slope projects with immediate effect;
  • immediately amend the 2009 guidelines on ‘special projects’ to explicitly prohibit all development on hill lands, except if it is for essential public services;
  • rehabilitate all existing exposed and barren slopes and spaces to prevent further soil erosion;
  • undertake stern enforcement, effective and deterrent punishment on those who clear land illegally or do not abide by conditions imposed to prevent soil-erosion;
  • monitor frequently and effectively all hill slopes by the local authorities;
  • publicly declare and give warning on all hill slopes and areas that are not safe.

Sources: Penang Forum 
Sahabat Alam Malaysia
Consumers Association of Penang 
Residents associations and management committees of Penang

Related Links:

www.thestar.com.my/.../tanjung-bungah-landslide-penang-forum-highlighted-cases/
GEORGE TOWN: Landslides at hill slope projects in Tanjung Bungah have been highlighted to the state government since early this year, ..

Will fatal landslide spur state to protect hills?
Groups call for RCI to investigate tragedy
Missing supervisor transferred recently
DOSH and construction board to probe cause of landslide
Three bodies pulled out, 11 workers still buried in rubble

 

Consumers & Residents tell state govt, ‘We told you so’



https://youtu.be/znzduuH8Soc

GEORGE TOWN: The Tanjung Bungah Residents’ Association (TBRA) is demanding for a Royal Commission of Inquiry (RCI) on all hill slope developments in Penang, following a landslide at a construction site this morning that buried nearly 18 people.

TBRA chair Meenakshi Raman said the RCI would be a form of audit on all risky hill slope projects in the state, to prevent any tragedies from happening again.

She also said the TBRA had repeatedly appealed to the Penang government to put an end to hill slope developments as it would have a domino effect on flash floods in the state.

“We were called ‘irrational’ by the Penang government when we appealed for hill slope developments to stop. Who’s irrational now?

“Today’s incident is a grave and grim warning to the authorities to take heed of Mother Nature’s warning,” Meenakshi said when contacted today.

In the 8.50am incident, a 10m-high hill slope came crashing down next to a construction site not far from the Tunku Abdul Rahman College in Tanjung Bungah.

At the time of writing, two survivors were rescued, while two more bodies were retrieved from the mud and rubble. Although their identities are not yet known, they are believed to be foreign workers.

Meenakshi said during last month’s flash floods, TBRA and other residents’ associations made a collective appeal to the state government to end all excess developments and hill clearing in the state.

TBRA, concerned groups, and Sahabat Alam Malaysia (SAM) had also previously called on the Penang government to amend existing guidelines concerning hill slopes.

Meanwhile, SAM president S M Mohamed Idris said the NGO had written to the Penang government “several times” urging them to stop hillside developments.

“We have warned that hill slopes are fragile ecosystems and cannot be touched.

“And now, we are really shocked that the lives of many have been sacrificed. We support TBRA’s call for an urgent RCI,” he said when contacted.

Source: Free Malaysia Today

Related 

Sixth body pulled out from Penang landslide heap



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Friday, October 20, 2017

Datuk Shafie Apdal nabbed in MACC investigation




4

https://youtu.be/ivoRTxcYPIQ


KOTA KINABALU: Datuk Seri Mohd Shafie Apdal has been arrested, a day before his 60th birthday and after nearly four hours of questioning by the Malaysian Anti-Corruption Commission.

Shafie, who was arrested at 9pm yesterday, is expected to be taken to the Kota Kinabalu High Court to be remanded today. MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrest.

The Parti Warisan Sabah president arrived at the MACC office at about 5.15pm yesterday, after flying in from Kuala Lumpur, to be questioned over projects implemented during his watch as Rural and Regional Development Minister between 2009 and 2015.

In a white shirt, Shafie Apdal was accompanied by his wife Datin Seri Shuryani Shuaib; Warisan vice-president Datuk Peter Anthony who was detained earlier and released on bail; and their lawyers Martin Tommy and Loretto Padua.

Before he left for the MACC office, Shafie told reporters at his Taman Gold View home: “We are willing to facilitate and when they called me, I flew back from Kuala Lumpur.

“It's a process of law and we need to give our cooperation. We are not going to obstruct and I know that MACC is just doing its job.”

He also said that he was saddened by the detention of his two siblings – Hamid and Yusof – in the investigation but reiterated that MACC was just doing its job.

Urging his supporters to remain calm and to continue the party’s work, Shafie and a relative led a short prayer before heading to the MACC office.

Earlier, a crowd of supporters gathered at the Kota Kinabalu International Airport to greet him.

Later, Shafie was taken to Queen Elizabeth Hospital for overnight observation for having high blood pressure, said his lawyer and Warisan deputy president Darell Leiking.

MACC has so far arrested 10 people, including Shafie’s brothers, his nephew Warisan Youth chief Azis Jamman, Peter, Tenom Umno Youth chief Jamawi Jaafar and his Tawau counterpart Ariffin Kassim, Warisan media representative Armarjit Singh, Hamid’s son-in-law Manzur Hussein Awal Khan, a 52-year-old local contractor and a 40-year-old senior civil servant in Putrajaya, over the case.

Hamid, who was warded at Damai Specialist Hospital for health problems since Sunday has been released on MACC bail.

Magistrate Stephanie Sherron Abbie, granted Hamid bail at RM50,000 in two sureties.

MACC prosecuting officer Mohd Faliq Basirudin said Hamid’s remand was supposed to only end today but he was released earlier because the investigation on him was complete.

Stephanie went to Gleneagles Hospital later, for the release of Manzur, 37, who is also warded over health issues.

He was granted bail at RM30,000 in two sureties and ordered to report once a month to the MACC office.

Yusof is still in MACC custody.

 Source: by stephanie leeruben sario The Star


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Thursday, October 19, 2017

Toray sets up new unit in Penang

Toray Malaysia Systems Solution Sdn Bhd managing director Peter Chan (second right) speaking at a press conference on Oct 17 after the official opening of Toray Malaysia Systems Solution Sdn Bhd at the Setia SPICE Convention Centre in Penang. Among those who were also present were Deputy Chief Minister II Dr P. Ramasamy (middle) and Toray IS Division, Japan general manager Akihiro Tada (first left)

 

Toray Malaysia Systems provides IT services


GEORGE TOWN: Toray Group (Malaysia), wholly-owned by Toray Industries Inc, Japan and one of the pioneers of Penang’s industrialisation programme, has expanded its business operations in Penang with the establishment of yet another company, namely Toray Malaysia Systems Solution Sdn Bhd (TMS).

TMS was established on May 2 with a RM5mil investment injected from Toray Japan.

It has offices at two locations in Penang, namely its head office at the Subterranean Penang International Convention and Exhibition Centre (Spice) and in Prai.

TMS managing director Peter Chan said the company, which is certified with MSC status by MDEC, provides global business services to its group of companies in Malaysia and abroad.

He said the company currently employs some 50 people and expects to increase the number to 100 within the next two to three years.

Chan said TMS provides full suite of information technology (IT) solutions and support for all aspects of business operations, ranging from planning and development to operation of information systems.

“These IT services include systems study, design, development, integration, deployment and maintenance, network infrastructure installation, IT helpdesk, systems administration support as well as IT consulting and IT research and development, according to customers’ stringent needs,” he added.

Chan said TMS is under the direct supervision of Toray Japan Information Systems Division.

“Backed by many years of information systems development experiences, technical know-how and skillful dedicated staff, TMS is set to contribute to Toray’s global business expansion as well as other related clients in Malaysia and the region.

“The head office at TMS Spice is equipped with the latest network infrastructure and IoT (Internet of Things) technology. It is designed to ensure that employees work in a conducive, healthy, happy, flexible working environment,” he said at TMS’ official opening at the Setia Spice Convention Centre recently.

Deputy Chief Minister II Dr P. Ramasamy, who was guest of honour at the event, said Penang recorded a total of RM5.3bil approved manufacturing investments from Japan from 2008 to 2016.

“I am also pleased to note that after the US and EU countries, Japanese investors make up the largest investments in Penang, making Japanese companies among the top FDI contributors to the Penang economy,” he added.

Source : The Star


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Monday, October 16, 2017

Call for action on flooding solution

Some representatives of the 24 residents associations and management corporations showing messages urging the state to resolve the flood issues in Penang. — Photos: ASRI ABDUL GHANI /The Star

Meenakshi (right) speaking on the group’s concerns at the press conference. 


Irked residents to hold meeting with state representatives on Oct 29


https://youtu.be/n2vO-nsZxkY

FRUSTRATED by the never-ending flood problems in Penang, a group has got together to arrange a meeting with state representatives on Oct 29.

The group of 24 residents associations and management corporations believes that the blame game between Barisan Nasional and Pakatan Harapan politicians should be stopped as the floods have caused a lot of hardship to the people.

Spokesperson Meenakshi Raman said the group would have experts share data collected on floods in their respective areas at the briefing.

“We want to make a collective call to the state government to take the flood and hill erosion issues very seriously,” she said at a press conference at the Consumers Association of Penang in Jalan Masjid Negeri yesterday.

Meenakshi said the state representatives could use the data gathered at the briefing titled ‘Penang Flood: Call for Action’ and discuss the matter during the upcoming state assembly in November.

The briefing is open to the public and the venue and time will be announced later.

“Flood mitigation alone is inadequate. We want comprehensive action and a stop to unsafe overdevelopment at hill slopes,” said Meenakshi.

Representatives of residents groups from Bandar Baru Ayer Itam attended the press conference to voice their dissatisfaction over the repeated flooding in the township, especially in Lebuhraya Thean Tek, Jalan Thean Tek and Lintang Thean Tek.

The groups are from Tanjung Court Condominium, Desa Delima (Tower Blocks), Sri Impian, Fortune Court, Treasure Ville and Desa Baiduri. Tanjung Court Condominium residents ad-hoc group representative K. Suthakar said Lebuhraya Thean Tek in Bandar Baru Ayer Itam would be badly hit by floods every time there was heavy rain.

“The state government keeps saying that the Federal Government doesn’t give them enough money.

“Will the flooding problems go on for five or 10 more years? How long is this going to continue? We are suffering,” he said.

He urged MPs to attend the briefing as well so that they could bring up the flood issue in Parliament.

Later, the group showed photos of landslides that happened during the Sept 15 flooding at Fettes Park, Solok Tembaga and Sungai Ara.

They urged Chief Minister Lim Guan Eng to focus on resolving the flood issues.

Penang Opposition leader Datuk Jahara Hamid said it was a good initiative to hold the briefing as there was a need to better understand the concerns of the people.

“I can only confirm attendance after the venue and time have been fixed,” she said.

Meanwhile, PKR Penanti assemblyman Dr Norlela Ariffin said she would attend the briefing.

Source: by Intan Amalina Mohd Ali The Star


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Friday, October 13, 2017

China top paper warns officials against 'spiritual anaesthesia', the root of corruptions

The founder of modern China chairman Mao Zedong. 

BEIJING: China’s top newspaper warned Communist Party officials not to “pray to God and worship Buddha”, because communism is about atheism and superstition is at the root of many corrupt officials who fall from grace.

China officially guarantees freedom of religion for major belief systems like Christianity, Buddhism and Islam, but party members are meant to be atheists and are especially banned from participating in what China calls superstitious practices like visiting soothsayers.

The party’s official People’s Daily yesterday said in a commentary it had not been uncommon over the past few years to see officials taken down for corruption to have also participated in “feudalistic superstitious activities”.

“In fact, some officials often go to monasteries, pray to God and worship Buddha,” it said.

“Some officials are obsessed with rubbing shoulders with masters, fraternising with them as brothers and becoming their lackeys and their money-trees.”

Chinese people, especially the country’s leaders, have a long tradition of putting their faith in soothsaying and geomancy, looking for answers in times of doubt, need and chaos.

The practice has grown more risky amid a sweeping crackdown on deep-seated corruption launched by President Xi Jinping upon assuming power in late 2012, in which dozens of senior officials have been imprisoned.

The People’s Daily pointed to the example of Li Chuncheng, a former deputy party chief in Sichuan who was jailed for 13 years in 2015 for bribery and abuse of power, who it said was an enthusiastic user of the traditional Chinese geomancy practice of feng shui.

“As an official, if you spend all your time fixating on crooked ways, sooner or later you’ll come to grief,” it said.

The People’s Daily said officials must remember Marx’s guiding words that “Communism begins from the outset with atheism”.

“Superstition is thought pollution and spiritual anaesthesia that cannot be underestimated and must be thoroughly purged,” it said. — Reuters


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Sunday, October 8, 2017

Another government department, seriously? Beef up the existing enforcement agencies !


YET another government department is going to be set up. Isn’t it common knowledge that the Government has serious budget constraints and is not recruiting to add to an already bloated civil service? And now, another tale of bureaucracy is being spun.

No wonder Malaysian Anti-Corruption Commission chief commissioner Tan Sri Dzulkifli Ahmad is upset over the planned formation of the National Integrity and Good Governance Department (JITN)

Minister in the Prime Minister’s Department Datuk Paul Low has said the proposed department is expected to improve good governance in the civil service.

How would the JITN as a new and probably tiny department be able to do the job? It would probably involve plenty of miracles since there is a reported 1.6 million civil servants to deal with, although Cuepacs says the figure is only at 500,000. It will be a Herculean task to move this mountain of manpower for what’s needed.

Low must surely have good intentions in wanting to set up the JITN, but its objectives and plans remain, at best, vague, at this point.

Its name and role seem almost identical to that of the Integrity Institute of Malaysia (IIM) and Enforcement Agency Integrity Commission.

The IIM, the brainchild of then Prime Minister Tun Abdullah Ahmad Badawi, was set up in 2004 and continues to function.

Its website reads: “IIM’s role is to facilitate the aims and objectives of the National Integrity Plan (NIP). The main objective of IIM is to act as a machinery in the implementation of the NIP towards developing a nation that is of high integrity, resilient and that embraces universal good values.”

The key roles of the institute are: to conduct research related to the integrity of institutions and that of the community; to organise conferences, seminars and forums; to elicit opinions from various sectors on the progress made or on the obstacles faced in implementing integrity; to publish and circulate printed materials as well as formulating and implementing training and educational programmes; to recommend new policies for the enhancement of integrity and ethics; and to advise the Government on strategies and programmes in enhancing integrity.

The voice of cynicism is growing loud and people are questioning the functions of this department, more so if it has no bite. MACC has strongly objected to it, with Dzulkifli labelling it a waste of public funds.

Who can blame the graft buster for being disgruntled? His investigators are overworked and the department understaffed, under budget and now, suddenly, the MACC learns that a new department is to be set up.

If it has no powers and does not concern the MACC, then it is on its way to being another government department which publishes more reports that nobody reads and which will most likely end up gathering dust.

Dzulkifli, who is hard-pressed to secure a heftier budget for his department, has publicly objected to the setting up of JITN, saying the funds could be better used to enhance current enforcement agencies and the wellbeing of its staff.

“What needs to be done is improve and strengthen the laws, human resources and welfare of existing agencies.

“The Government should oversee the welfare of law enforcers. Go and see the conditions of police barracks. They are poorly maintained,” he said.

Dzulkifli urged the Government to re-examine the salaries and housing schemes of law enforcers.

“If we want to decrease corruption and abuse of power in enforcement agencies, the problem will not be solved if law enforcers do not have their welfare taken care of.

“I will defend them (law enforcers) when needed, and take action against them (if they do wrong).

“But we also need to see the state of their welfare,” he told reporters at a corruption-free pledge signing ceremony in Sungai Petani recently.

“Forming a new department will be costly and require hiring new staff. Their scope of duties will be similar to (that of) other law enforcers,” he added.

And even in less-than-ideal circumstances, the MACC has continued with its crime-busting duty, its stats backing up its hard work. Up to last month this year alone, the commission has arrested 728 individuals, including 349 civil servants, 215 members of the public and 151 from the private sector.

So far, 316 people have been accused of corrupt practices this year. Nearly half of them – 155 individuals – are from the civil service. Last year, only 113 civil servants had the long arm of the law catch up with them.

MACC statistics reveal that 1,629 cases (up to last month this year) involved civil servants, compared to 2,008 the whole of last year, with 654 cases concerning members of the public and 174 involving those from the private sector.

Until September this year, 432 investigation papers were opened against civil servants, compared to 526 last year. Half of that figure – 215 – implicated members of the public, 102 members of the private sector, and seven from other categories, including politics.

Up until last month, 756 investigation papers were opened.

Low said the Cabinet has given the green light for the setting-up of JITN to serve as a coordinating body to lead transformational changes in the public and private sectors.

He said the department would focus on good governance, integrity and human rights. How it will co-exist with Suhakam (Human Rights Commission of Malaysia) is something which needs explaining.

JITN received the Cabinet’s nod on July 28, and is currently under review by the Public Service Department pending final approval. The department was previously a division under Low in the Prime Minister’s Department.

There isn’t much the MACC can do now since the Cabinet has already approved the move.

But what the Government should consider doing is to beef up the MACC where manpower and resources are concerned, given the flurry of cases flying its way.

By Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.


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Wednesday, October 4, 2017

Chinese Scientists Make Breakthrough in Replacing WiFi With LiFi

https://youtu.be/a1qvAy_9lLU

CHANGCHUN, Oct. 3 (Xinhua) -- Chinese scientists have made a breakthrough in creating full-color emissive carbon dots (F-CDs), which brings them one step closer to developing a faster wireless communication channel that could be available in just six years.

Light Fidelity, known as LiFi, uses visible light from LED bulbs to transfer data much faster than radio wave-based WiFi.

While most current research uses rare earth materials to provide the light for LiFi to transmit data, a team of Chinese scientists have created an alternative -- F-CDs, a fluorescent carbon nanomaterial that proves to be safer and faster.

"Many researchers around the world are still working on this. We were the first to successfully create it using cost-effective raw materials such as urea with simple processing," said Qu Songnan, an associate researcher at Changchun Institute of Optics, Fine Mechanics and Physics, the Chinese Academy of Sciences, which leads the research.

Qu said rare earth has a long lifespan which reduces the speed of LiFi transmission. However, F-CDs enjoy the advantage of faster data transmission speeds.

In previous studies, carbon dots were limited to the emission of lights such as blue and green. The new nanomaterial that Qu's team has developed can emit all light visible to the human eye, which is a breakthrough in the field of fluorescent carbon nanomaterial.

Qu said this is significant for the development of LiFi, which he expects to enter the market in just six years.

A 2015 test by a Chinese government ministry showed that LiFi can reach speeds of 50 gigabytes per second, at which a movie download can be completed in just 0.3 seconds

Source: Xinhua


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Tuesday, September 19, 2017

JPMorgan CEO warns he will fire any employee trading Bitcoin for being “stupid.”

 

 
Tough stand: Dimon has warned that he will fire JPMorgan traders who traded in bitcoin ‘in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.’ — AFP

NEW YORK: JPMorgan Chase & Co chief executive officer Jamie Dimon said he will fire any employee trading bitcoin for being “stupid.”

The cryptocurrency “won’t end well,” he told an investor conference in New York on Tuesday, predicting it will eventually blow up. “It’s a fraud” and “worse than tulip bulbs.”

If a JPMorgan trader began trading in bitcoin, he said: “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”

Bitcoin has soared in recent months, spurred by greater acceptance of the blockchain technology that underpins the exchange method and optimism that faster transaction times will encourage broader use of the cryptocurrency.

Prices have climbed more than four-fold this year – a run that has drawn debate over whether that’s a bubble.

Bitcoin initially slipped after Dimon’s remarks. It was down as much as 2.7% before recovering.

Last week, it slumped after reports that China plans to ban trading of virtual currencies on domestic exchanges, dealing another blow to the US$150bil cryptocurrency market.

Tulips are a reference to the mania that swept Holland in the 17th century, with speculators driving up prices of virtually worthless tulip bulbs to exorbitant levels.

That didn’t end well.

In bitcoin’s case, Dimon said he’s sceptical authorities will allow a currency to exist without state oversight, especially if something goes wrong.

“Someone’s going to get killed and then the government’s going to come down,” he said.

“You just saw in China, governments like to control their money supply.”

Dimon differentiated between the bitcoin currency and the underlying blockchain technology, which he said can be useful.

Still, he said banks’ application of blockchain “won’t be overnight.”

The bank chief said he wouldn’t short bitcoin because there’s no telling how high it will go before it collapses.

The best argument he’s heard, he said, is that it can be useful to people in places with no other options – so long as the supply of coins doesn’t surge.

“If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars,” he said.

“So there may be a market for that, but it’d be a limited market.”— Bloomberg


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Sunday, September 17, 2017

Living at the edge of chaos, climate change is not fake science


Nature’s fury: A car dealership is covered by Hurricane Harvey floodwaters near Houston, Texas. The chaos caused by the hurricane proves that climate change is not fake science. — Reuters

THIS month, two Category 4 hurricanes hit the United States within 17 days of each other. In Asia, North Korea is threatening nuclear Armageddon, and floods and famine are putting thousands of lives at risk from Bangladesh to Yemen. How can one survive in this chaotic era?

A first step must be to make sense of the apparent chaos. Hurricanes Harvey and Irma have proved that climate change is not fake science, but real threats to home and security. When hailstones the size of golf balls hit Istanbul in the middle of summer, even the agnostics accept that climate change is serious business.

The biggest uncertainty that has hit Asia recently is the shock that North Korea has not only developed possibly a hydrogen bomb, but also the missile capability to deliver it even to the United States. This has changed the geopolitical balance not only in North Asia, but globally because it is no longer possible for the United States alone to contain nuclear proliferation.

Physics teaches us that chaos is often a characteristic of transition from one order to another. Chaos is also a pattern in which there is apparently no discernible pattern.

But there is a seismic transition from a unipolar world led by the United States to a multi-polar world of competing powers and ideology, particularly after the 2007 global financial crisis. As the share of US GDP in the world declines relative to the rest, the rise of China, India and increasing assertion by Russia and non-state players like IS means that the United States’ ability to dominate militarily and ideologically is being challenged.

At the same time, increasing stresses from social inequalities and paranoia of terror, immigration and job loss have tilted the United States to become more inward looking. The Trump administration has dramatically begun to dismantle the neoliberal order of multilateral trade and finance that shaped US foreign policy since the end of the Second World War.

There is a raw open division within the United States in outlook and values. The Democratic Left believes in maintaining the old order of moral leadership on human rights, democracy and multilateral global stability and prosperity. The Republican Right questions these beliefs and prefers America First, negotiating bilaterally to achieve that premier status.

Earlier this year, the Pentagon asked the Rand Corporation to conduct a review on “Alternative Options for US Policy toward the International Order”. The key questions for the New Global Order are: Who sets the rules and how binding are the rules?

The study breaks the future order into two camps of rule-makers – the US and its allies or a concert of great powers. Under such a division, there are two conditions where rules are binding – one dominated by the US camp to enforce rules and the other where the great powers agree to a global constitutional order enforced by institutions. The other two conditions where rules are not binding involve a coalition of states aligned to counteract against revisionism and a new concert of great powers.

The immediate problem with the Rand categorisation of New Order Visions is that the existing liberal, rules-based order is not being challenged by others, but by the US itself.

First, after German Chancellor Angela Merkel’s comment earlier this year that Europe must begin to look after its own interests, it is no longer clear that America’s traditional allies are going to follow the US leadership when there are serious disagreements on trade, climate change and immigration. It is no coincidence that the largest trade imbalances are no longer between China or oil producers with the US, but between Europe and the United States. Germany alone is running a current account surplus equivalent to around 8% of GDP.

Second, within the Middle East, alliances are shifting almost by the day. The quarrel between Saudi Arabia and Qatar has riven the Gulf Cooperation Council, while Turkey is playing an increasingly pivotal role within the shifting alliances.

Third, North Korea’s bid for nuclear power membership, despite being a small state, means that Great Powers may have to accommodate new players whether they like it or not.

Fourth, climate change in the form of Hurricanes Harvey and Irma demonstrate that nature can impose larger and larger economic losses on nations and regions, which will require global public goods that the current order is neither willing to fund, nor able to agree on how to address. The economic losses from Harvey alone is estimated at US$180bil, equivalent to the annual GDP of a middle-income economy. The existing multilateral bodies such as the United Nations and the World Bank are facing serious resource shortages relative to these new global demands.

The bottom line is that the current order has neither the resources nor the collective will to enforce rules when the human population growth puts increasing competition for scarce water, food and territorial spaces. Chaos arises from the breakdown of rules and borderlines.

In short, globalisation of trade, information and human migration has meant that traditional borders in many regions are becoming non-enforceable. For example, it is 101 years since the 1916 Sykes-Picot Agreement divided up the collapsing Ottoman Empire into British, French and Russian spheres of interest and eventual control. These borders were drawn and enforced by the Great Powers through their military superiority.

Seen from the long lens of history, with the Great Powers being unwilling to put troops on the ground to enforce borders drawn up under the colonial era, these artificial borders are failing.

A hallmark of the times is that even the best of think tanks cannot map out how to navigate through this era of disruptive technology, unpredictable climate and shifting alliances and interests. What history teaches us is that the fault lines will be at the borderlands, at the confluence of emerging forces and stresses.

We should therefore be prepared for not only disruption at the borderlands of physical space, but within the realms of cyberspace.

By Andrew Sheng

Tan Sri Andrew Sheng writes on global issues from an Asian perspective.

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